Election highlights need to set long-term super goals: Andrea Slattery

GUEST OBSERVER

It is imperative that the new government moves quickly to set the long-term goals for superannuation.

It has been the Association’s long-term policy that the objective and underlying principles of superannuation should be enshrined in legislation, and what has happened over the course of this election campaign has simply reinforced our position. 

It is quite clear that the election highlighted the fact that many in the electorate were unnerved by the changes to superannuation proposed by both major parties and are seeking certainty for their retirement planning.

Both major political parties were seen as moving the goal posts for ordinary Australians to build their savings to ensure a dignified retirement. This is despite the repeated calls from the public and superannuation industry for the ongoing tinkering with superannuation to stop. This is why it is critical to have a politically bipartisan framework for superannuation that is removed from both the budgetary and political cycles for the long term.

We need to have a sustainable and measured policy approach to people’s second largest asset, superannuation. which assists Australians to accumulate adequate retirement income savings for a secure retirement.

It is especially important at times of political uncertainty, such as what has happened with the federal election and Brexit, that people know that their retirement savings are secure.

The Association is ready to work “constructively” with the new Government, Opposition, and cross-benchers in the House of Representatives and the Senate to address the various superannuation policy issues that arose out of the last federal Budget.

It is also important to remember that our superannuation system is one of the world’s best retirement income systems and we need to understand the benefit it provides to our economy and national prosperity.

We are on the record in saying we believed the reduction in the concessional contribution caps were detrimental to the goal of encouraging people to be self-sufficient in retirement and that other budget changes were complex and disrupted many people’s long-term plans. We look forward to working with all parliamentarians to either change or ameliorate the impact of these changes.

It’s also important to note that there were some positive measures in the Budget that were overlooked to some degree, and we will be urging that they get enacted by the new Parliament as quickly as possible.

Among the positives, which the Association has long advocated, were the carry forward of unused concessional contribution caps, allowing people aged between 65 and 74 to contribute to their super without meeting the ‘work test’, and removing the ‘10 percent’ rule that allows all fund members to make deductible contributions to their super.

Andrea Slattery is chief executive officer, SMSF Association and can be contacted here.